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WazirX Creditors: Vote Now or Wait Until 2030

Coin WorldTuesday, Feb 4, 2025 8:02 pm ET

1min read

WazirX Creditors Weigh Restructuring Plan That Could Revive Trading: Details

WazirX creditors are set to vote on a proposed restructuring plan that could restart trading by April 2025. The plan offers a 52% debt settlement now, with 48% paid from future profits and recoveries. If rejected, liquidation may delay payouts until 2030, reducing creditor recovery chances.

WazirX creditors are set to vote on a proposed restructuring plan to address losses from a $235 million hack in July 2024. The vote will determine whether the exchange resumes trading or undergoes liquidation under Singapore’s Companies Act. If approved, the restructuring plan could see trading recommence by April 2025, with initial payouts starting within 10 business days.

According to a recent statement from the Indian cryptocurrency exchange WazirX, creditors will vote on a restructuring plan to recover losses from the WazirX hack. The proposed plan outlines a 52% immediate debt settlement, with the remaining 48% to be paid from future profits and asset recoveries.

The vote follows approval from the Singapore High Court, allowing WazirX creditors to decide the exchange’s future. If the plan is accepted by at least 75% of creditors, trading may resume by April 2025, and payouts will begin within 10 business days.

In addition, the development comes days after the Singapore High Court granted WazirX approval in late January to convene a Scheme meeting. This meeting will allow creditors to vote on the proposed recovery plan, facilitating a structured repayment of unstolen funds.

What Happens If Plan Fails?

If WazirX creditors reject the restructuring plan, the exchange will undergo liquidation under Singapore’s Companies Act. This could postpone repayments until 2030, significantly reducing the chances of full recovery for affected users.

Industry experts have warned that liquidation could lead to unpredictable asset distribution. The timeline for payouts would be extended, and the value of recoverable assets could decrease due to market volatility and operational challenges.

Planned Recovery Measures And Future Operations

To facilitate

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